Lemon Tree Hotels Limited , a leading hospitality chain in India, has announced a significant expansion of its presence in Rajasthan with the signing of a new property in Jaipur. This strategic move underscores the company's commitment to growth and its confidence in the region's tourism potential.

Key Details of the New Property

Expansion Strategy

The new Lemon Tree Hotel in Jaipur is part of a broader expansion plan in Rajasthan. The company's portfolio in the state now includes:

• 12 operational properties
• 9 upcoming properties
• The newly signed Jaipur hotel

This strategic expansion reinforces Lemon Tree Hotels' position as a key player in Rajasthan's hospitality sector, catering to both business and leisure travelers.

Implications for Lemon Tree Hotels

Market Presence

The addition of this property strengthens Lemon Tree's foothold in Rajasthan, a state known for its rich cultural heritage and tourism potential.

Diverse Offerings

With amenities such as a restaurant, lounge, meeting room, swimming pool, and fitness center, the new hotel is positioned to cater to a wide range of guest needs.

Management Strategy

By utilizing its wholly-owned subsidiary, Carnation Hotels Private Limited, for property management, Lemon Tree maintains direct control over operations and quality standards.

Growth Trajectory

This expansion aligns with Lemon Tree Hotels' strategy of increasing its presence across various tiers of cities in India.

The signing of this new property in Jaipur demonstrates Lemon Tree Hotels' continued commitment to growth and its ability to identify strategic locations for expansion. As the hospitality industry recovers from the impacts of the global pandemic, such moves could position the company favorably to capture the resurgence in domestic and international travel.

Investors and industry observers will likely watch closely to see how this and other upcoming properties contribute to Lemon Tree Hotels' overall performance and market share in the competitive Indian hospitality sector.

Lemon Tree Hotels Limited (LTHL) has disclosed that its material subsidiary, Berggruen Hotels Private Limited (BHPL), has received a revised tax demand from the Commercial Tax Officer in Bangalore. This development comes as part of the company's ongoing regulatory compliance under SEBI regulations.

Key Details of the Tax Demand

Company's Response

LTHL has stated that based on their assessment, the demand is not maintainable. The company is currently evaluating all options, including the possibility of filing an appeal against the order. This stance suggests that LTHL is prepared to contest the tax demand through appropriate legal channels.

Regulatory Compliance

The disclosure of this information aligns with LTHL's obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant financial developments that may impact the company's operations or financial position.

Potential Impact

While LTHL has not quantified any material impact on its financial operations beyond the specified amount, the company's decision to potentially appeal the order indicates its commitment to addressing this tax issue. The outcome of any future appeal or legal proceedings related to this demand could have implications for BHPL and, by extension, for LTHL.

Investors and stakeholders of Lemon Tree Hotels Limited should monitor further developments regarding this tax demand, as it may have implications for the company's financial statements and future cash flows. However, it's important to note that the company considers the demand as not maintainable, suggesting confidence in its position on the matter.